Project Charter

Project Charter is a document specifying about the initial requirements, expectations and the needs of the stakeholders and the approval of this document formally authorizes the project or the phase. The authorization is done by a party which is external to the project but never the same has the ability to fund the project. (eg: project sponsor). The participation of the project manager in the development of the project charter is vital as the application of the resources on the project activities can be effectively done by the project manager as he possesses a better knowledge on the project.

According to PMBOK (2008) Project Charter highlights on the purpose, objectives and the major requirements of the project, while the basic schedule and budget and the analyzed major risks are stated which are necessary for the initiator to accept or reject the project. The level authority assigned to the project manager is also stated in the project charter which is normally depend on the structure of the organization.

In order to develop the Project charter the Project Statement of Work is an important input as it describe about the business need for the project, the scope and the expected characteristics of the project outcome and the strategic plans of the organization to which the project should be adhered to. The Business Case for the project determines the feasibility of the project by considering on the conflicting expectations and the demands and the cost likely to be spent and the consultants, sponsors, project managers, PMO and other stakeholders analyze these inputs while researching on the organizational process assets and enterprise environmental factors, develop the project charter. 

References

·  PMBOK Guide, 2008. A Guide to the Project Management Body of Knowledge, Fourth Edition.

·  Schwalbe K. , 2010. Information Technology Project Management. 6th ed. United States of America: Thomson Learning.